New FHA Streamline Changes June 11, 2012

FHA Streamline Refinance : New and Improved

THIS ARTICLE CONTAINS CORRECT AND UPDATED INFORMATION AS OF August 21, 2013

Refinancing your FHA mortgage just cheaper!

Get your FHA streamline refinance applications ready!FHA is lowering the required mortgage insurance premiums for all loans made prior to May 31, 2009. The changes are as follows: For all Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 bps. This is a HUGE decrease from current rates! For all Streamline Refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009, the Up-Front MIP will decrease from 1 percent to 0.01 percent of the loan amount. Another HUGE reduction! |More information on FHA Mortgage Insurance Changes

OK, what does all this REALLY mean?

Well, in simplest terms…Before these changes, someone looking to refinance their FHA loan would’ve had to pay nearly double the mortgage insurance they currently pay on their loan! So, even if you save a few hundred dollars a month by lowering your rate, you give all of the savings right back when your mortgage insurance jumps up. Not anymore! Now, as long as you’ve paid on time and had your FHA loan before May 2009, you can get a super low rate withouthaving an increase in your mortgage insurance! What does this mean? More savings for you and your family!! So, just to recap, you can be upside-down (see: owe more than your home is worth!), and make little to no income and still qualify for this awesome program! Rates are in the 3’s right now on a 30 year fixed loan!|More information on New Upside Down Refinance Programs

How much of an impact will these changes make?

Here is a quote directly from the HUD website:” Currently, 3.4 million households with loans endorsed on or before May 31, 2009, pay more than a five percent annual interest rate on their FHA-insured mortgages. By refinancing through this streamlined process, it’s estimated that the average qualified FHA-insured borrower will save approximately $3,000 a year or $250 per month. FHA’s new discounted prices assume no greater risk to its Mutual Mortgage Insurance (MMI) Fund and will allow many of these borrowers to refinance into a lower cost FHA-insured mortgage without requiring additional underwriting. FHA-insured homeowners should contact their existing lender to determine their eligibility.“source http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2012/HUDNo.12-045

About the Author

Jason is a lifelong student of the mortgage industry that prides himself on his innovative ability to consistently find the best deals for his clients. With well over a decade of industry knowledge and experience, you can trust that he will help guide you in the right direction for your home financing needs. What separates Jason from everyone else is the fact that he cares so much about the people he helps, driving him to go above and beyond to make the dream of homeownership possible for all.

Jason Gonzalez, NMLS #314588, is a licensed mortgage originator in the State of Florida. Loan services may be provided by Innovative Mortgage Services, NMLS #250769 although the views expressed within this website are that of the individual author and not Innovative Mortgage.